NVDA, SMCI and INTC Forecast – Chips Continue to Struggle

NVDA Technical Analysis

Nvidia looks like it’s going to open up again during the pre-market trading on Thursday. That being said, it is a market that continues to struggle, but I also believe that longer term traders will eventually show up here. I’d be watching the $100 level very closely because there is a lot of psychology there and I would assume quite a bit of options trading. This, of course, is assuming that we are going to get there. I’m watching to see if we get some type of bounce right now though I think it’s more a wait and see type of market.

SMCI Technical Analysis

Super Micro Computer looks like it’s going to open up ever so slightly lower than it closed during the previous session, but really nothing of note. We are still very much in a consolidation area despite the fact that we had a big spike a couple of weeks ago and I think we are still very much in a bottoming pattern.

With this being the case and the fact that we had that very negative candlestick for the Wednesday session, I’d be looking at trying to catch a bounce somewhere closer to the $30 level, at least as things stand right now. On the other hand, if we turn around and take out the 200 day EMA, which is near the $45 level, then I think you start to see an acceleration to the upside.

INTC Technical Analysis

Intel looks like it’s going to open up just a few cents below where it closed. I still think this is an outlier here because Intel had been so sold off for so long that we are in the midst of a major bottoming pattern and longer term traders are almost certainly accumulating here.

That being said, we could drop to the 50 day EMA just above the $22 level rather quickly, perhaps even lower than that, maybe down to the $20 level. But either way, I don’t want to short this stock. It’s far too beaten down at this point. I’m looking for a drop in a bounce to take advantage of.